Company Overview - Caleres, Inc. (CAL) is experiencing significant attention from investors due to high implied volatility in its options market, particularly the Oct 17, 2025 $42.50 Call option [1] - The company currently holds a Zacks Rank of 5 (Strong Sell) within the Shoes and Retail Apparel industry, which is positioned in the bottom 12% of the Zacks Industry Rank [3] Analyst Sentiment - Over the past 60 days, no analysts have increased their earnings estimates for Caleres for the current quarter, while two analysts have revised their estimates downwards [3] - The Zacks Consensus Estimate for the current quarter has decreased from 85 cents per share to 51 cents per share during this period [3] Options Market Insights - The high implied volatility suggests that options traders are anticipating a significant price movement for Caleres, which could indicate an upcoming event that may lead to a substantial rally or sell-off [2][4] - Options traders often seek to capitalize on high implied volatility by selling premium, aiming for the underlying stock to not move as much as expected by expiration [4]

[PART I FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) This section presents Caleres, Inc.'s unaudited condensed consolidated financial statements and management's discussion and analysis [ITEM 1 FINANCIAL STATEMENTS (Unaudited)](index=3&type=section&id=ITEM%201%20FINANCIAL%20STATEMENTS%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements for Caleres, Inc., including the balance sheets, statements of earnings, comprehensive income, cash flows, and shareholders' equity, along with detailed notes explaining the basis of presentation, accounting policies, and specific financial items [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This statement provides a snapshot of the company's financial position, detailing assets, liabilities, and equity | Metric ($ thousands) | May 3, 2025 | May 4, 2024 | Change ($ thousands) | Change (%) | | :------------------- | :---------- | :---------- | :------------------- | :--------- | | Total Assets | 1,907,696 | 1,861,110 | 46,586 | 2.5% | | Total Current Assets | 846,392 | 805,336 | 41,056 | 5.1% | | Inventories, net | 573,615 | 530,570 | 43,045 | 8.1% | | Cash and cash equivalents | 33,139 | 30,709 | 2,430 | 7.9% | | Total Liabilities | 1,294,792 | 1,284,081 | 10,711 | 0.8% | | Total Current Liabilities | 770,256 | 764,365 | 5,891 | 0.8% | | Borrowings under revolving credit agreement | 258,500 | 191,000 | 67,500 | 35.3% | | Total Equity | 612,904 | 577,029 | 35,875 | 6.2% | [Condensed Consolidated Statements of Earnings](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Earnings) This statement reports the company's financial performance over a period, showing revenues, expenses, and net earnings | Metric ($ thousands, except per share amounts) | Thirteen Weeks Ended May 3, 2025 | Thirteen Weeks Ended May 4, 2024 | Change ($ thousands) | Change (%) | | :--------------------------------------------- | :------------------------------- | :------------------------------- | :------------------- | :--------- | | Net sales | 614,221 | 659,198 | (44,977) | (6.8)% | | Gross profit | 278,694 | 309,095 | (30,401) | (9.8)% | | Gross margin | 45.4% | 46.9% | (1.5 ppt) | | | Selling and administrative expenses | 266,483 | 266,337 | 146 | 0.1% | | Operating earnings | 11,584 | 42,758 | (31,174) | (72.9)% | | Net earnings attributable to Caleres, Inc. | 6,943 | 30,939 | (23,996) | (77.6)% | | Diluted earnings per common share | $0.21 | $0.88 | ($0.67) | (76.1)% | [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) This statement presents net earnings and other comprehensive income items, reflecting changes in equity from non-owner sources | Metric ($ thousands) | Thirteen Weeks Ended May 3, 2025 | Thirteen Weeks Ended May 4, 2024 | Change ($ thousands) | Change (%) | | :------------------- | :------------------------------- | :------------------------------- | :------------------- | :--------- | | Net earnings | 5,946 | 30,798 | (24,852) | (80.7)% | | Foreign currency translation adjustment | 5,808 | (830) | 6,638 | N/A | | Pension and other postretirement benefits adjustments | 1,088 | 1,140 | (52) | (4.6)% | | Other comprehensive loss, net of tax | 6,896 | 310 | 6,586 | 2124.5% | | Comprehensive income attributable to Caleres, Inc. | 13,792 | 31,322 | (17,530) | (56.0)% | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This statement details cash inflows and outflows from operating, investing, and financing activities over a period | Metric ($ thousands) | Thirteen Weeks Ended May 3, 2025 | Thirteen Weeks Ended May 4, 2024 | Change ($ thousands) | | :------------------- | :------------------------------- | :------------------------------- | :------------------- | | Net cash (used for) provided by operating activities | (5,657) | 36,074 | (41,731) | | Net cash used for investing activities | (21,146) | (10,326) | (10,820) | | Net cash provided by (used for) financing activities | 30,277 | (16,359) | 46,636 | | Increase in cash and cash equivalents | 3,503 | 9,351 | (5,848) | | Cash and cash equivalents at end of period | 33,139 | 30,709 | 2,430 | [Condensed Consolidated Statements of Shareholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders'%20Equity) This statement outlines changes in the company's equity components, including net earnings, dividends, and stock repurchases | Metric ($ thousands) | May 3, 2025 | May 4, 2024 | Change ($ thousands) | Change (%) | | :------------------- | :---------- | :---------- | :------------------- | :--------- | | Total Equity | 612,904 | 577,029 | 35,875 | 6.2% | | Net earnings (loss) | 5,946 | 30,798 | (24,852) | (80.7)% | | Dividends paid | (2,362) | (2,442) | 80 | (3.3)% | | Acquisition of treasury stock | (5,051) | (15,070) | 10,019 | (66.5)% | | Contributions by noncontrolling interests | 1,750 | — | 1,750 | N/A | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes provide essential details and explanations supporting the condensed consolidated financial statements, clarifying accounting policies and specific items [Note 1 Basis of Presentation and General](index=8&type=section&id=Note%201%20Basis%20of%20Presentation%20and%20General) This note outlines the basis for preparing the unaudited condensed consolidated financial statements, including the consolidation of subsidiaries, the seasonal nature of the business, and the use of estimates. It also details the accounting for noncontrolling interests, the supplier finance program, and the classification of property held for sale - The company's business is seasonal, with historically higher earnings in the third fiscal quarter, though recent years show a more even distribution. Interim results may not predict full-year outcomes[16](index=16&type=chunk) - The company consolidates CLT Brand Solutions, a 50/50 joint venture in China with Brand Investment Holding, on a one-month lag. Capital contributions to CLT were **$3.5 million in Q1 2025**, including **$1.8 million from Brand Investment Holding**, compared to no contributions in Q1 2024[19](index=19&type=chunk) CLT Brand Solutions ($ thousands) | CLT Brand Solutions ($ thousands) | Thirteen Weeks Ended May 3, 2025 | Thirteen Weeks Ended May 4, 2024 | Change ($ thousands) | Change (%) | | :-------------------------------- | :------------------------------- | :------------------------------- | :------------------- | :--------- | | Net sales | 7,210 | 5,722 | 1,488 | 26.0% | | Operating loss | (1,996) | (300) | (1,696) | 565.3% | - The company operates a voluntary supplier finance program, with **$11.8 million of accounts payable** subject to the program as of May 3, 2025, a decrease from **$16.0 million** a year prior[21](index=21&type=chunk)[23](index=23&type=chunk) - The main portion of the corporate headquarters campus in Clayton, Missouri, has been classified as property and equipment held for sale as of May 3, 2025, following agreements to sell components of the campus[24](index=24&type=chunk) [Note 2 Impact of New Accounting Pronouncements](index=9&type=section&id=Note%202%20Impact%20of%20New%20Accounting%20Pronouncements) The company is evaluating the impact of recently issued accounting pronouncements, including ASU 2023-09 (Income Taxes) and ASU 2024-03 (Disaggregation of Income Statement Expenses). ASU 2023-09 is effective in fiscal year 2025 and is not expected to have a material impact, while ASU 2024-03 is effective for fiscal year 2027 annual disclosures and its impact is still being evaluated - ASU 2023-09 (Income Taxes) expands disclosure requirements for rate reconciliation and income taxes paid by jurisdiction, effective for the company in **fiscal year 2025**, with no material impact expected[25](index=25&type=chunk) - ASU 2024-03 (Disaggregation of Income Statement Expenses) requires new tabular disclosures for certain income expenses, effective for the company's annual disclosures in **fiscal year 2027**, and its impact is currently being evaluated[26](index=26&type=chunk) [Note 3 Revenues](index=10&type=section&id=Note%203%20Revenues) Net sales decreased by 6.8% to $614.2 million for the thirteen weeks ended May 3, 2025, compared to the prior year, with declines across both Famous Footwear and Brand Portfolio segments. The note provides a detailed disaggregation of revenue by segment and source, along with information on contract balances Revenue Source ($ thousands) | Revenue Source ($ thousands) | Thirteen Weeks Ended May 3, 2025 | Thirteen Weeks Ended May 4, 2024 | Change ($ thousands) | Change (%) | | :--------------------------- | :------------------------------- | :------------------------------- | :------------------- | :--------- | | Total direct-to-consumer sales | 428,672 | 453,124 | (24,452) | (5.4)% | | Wholesale - e-commerce | 63,107 | 67,787 | (4,680) | (6.9)% | | Wholesale - landed | 110,563 | 119,539 | (8,976) | (7.5)% | | Wholesale - first cost | 9,818 | 15,736 | (5,918) | (37.6)% | | Licensing and royalty | 1,919 | 2,865 | (946) | (33.0)% | | Net sales (Total) | 614,221 | 659,198 | (44,977) | (6.8)% | - The loyalty programs liability increased by **$6.3 million** due to points earned and decreased by **$5.5 million** due to expirations and redemptions during the thirteen weeks ended May 3, 2025[38](index=38&type=chunk) Contract Balance ($ thousands) | Contract Balance ($ thousands) | May 3, 2025 | May 4, 2024 | Change ($ thousands) | Change (%) | | :----------------------------- | :---------- | :---------- | :------------------- | :--------- | | Customer allowances and discounts | 15,135 | 17,090 | (1,955) | (11.4)% | | Loyalty programs liability | 8,568 | 8,350 | 218 | 2.6% | | Returns reserve | 15,861 | 15,100 | 761 | 5.0% | | Gift card liability | 5,876 | 5,841 | 35 | 0.6% | | Allowance for expected credit losses | 10,264 | 8,101 | 2,163 | 26.7% | [Note 4 Earnings Per Share](index=12&type=section&id=Note%204%20Earnings%20Per%20Share) Basic and diluted earnings per common share attributable to Caleres, Inc. shareholders decreased significantly to $0.21 for the thirteen weeks ended May 3, 2025, from $0.88 in the prior year. The company repurchased 300,000 shares during the period, incurring an immaterial amount of excise taxes under the Inflation Reduction Act Earnings Per Share ($ thousands, except per share amounts) | Metric ($ thousands, except per share amounts) | Thirteen Weeks Ended May 3, 2025 | Thirteen Weeks Ended May 4, 2024 | Change ($ thousands) | Change (%) | | :--------------------------------------------- | :------------------------------- | :------------------------------- | :------------------- | :--------- | | Net earnings attributable to Caleres, Inc. | 6,943 | 30,939 | (23,996) | (77.6)% | | Basic earnings per common share | $0.21 | $0.88 | ($0.67) | (76.1)% | | Diluted earnings per common share | $0.21 | $0.88 | ($0.67) | (76.1)% | | Shares repurchased | 300,000 | 416,000 | (116,000) | (27.9)% | [Note 5 Restructuring and Other Special Charges](index=12&type=section&id=Note%205%20Restructuring%20and%20Other%20Special%20Charges) The company incurred $0.6 million in restructuring and other special charges during the first quarter of 2025, primarily for legal and related costs associated with the pending acquisition of Stuart Weitzman, expected to close in summer 2025. No such charges were incurred in the prior year - The company signed a definitive agreement to acquire Stuart Weitzman from Tapestry, Inc. for **$105 million**, expected to close in summer 2025, and incurred **$0.6 million** in related legal and other costs in Q1 2025[43](index=43&type=chunk)[44](index=44&type=chunk) [Note 6 Business Segment Information](index=13&type=section&id=Note%206%20Business%20Segment%20Information) The company's operating earnings significantly decreased across both Famous Footwear and Brand Portfolio segments for the thirteen weeks ended May 3, 2025, compared to the prior year, reflecting overall lower net sales and gross profit Segment Performance ($ thousands) | Segment Performance ($ thousands) | Thirteen Weeks Ended May 3, 2025 | Thirteen Weeks Ended May 4, 2024 | Change ($ thousands) | Change (%) | | :-------------------------------- | :------------------------------- | :------------------------------- | :------------------- | :--------- | | **Famous Footwear** | | | | | | Net sales | 327,676 | 349,553 | (21,877) | (6.3)% | | Gross Profit | 148,441 | 161,005 | (12,564) | (7.8)% | | Operating earnings | 4,974 | 16,855 | (11,881) | (70.5)% | | Segment assets | 877,642 | 868,729 | 8,913 | 1.0% | | **Brand Portfolio** | | | | | | Net sales | 295,395 | 317,211 | (21,816) | (6.9)% | | Gross Profit | 129,287 | 147,812 | (18,525) | (12.5)% | | Operating earnings | 17,415 | 41,425 | (24,010) | (57.9)% | | Segment assets | 861,984 | 827,645 | 34,339 | 4.1% | | **Total Operating Earnings** | 11,584 | 42,758 | (31,174) | (72.9)% | [Note 7 Inventories](index=15&type=section&id=Note%207%20Inventories) The company's net inventory balance increased to $573.6 million as of May 3, 2025, up 8.1% from $530.6 million a year prior, primarily driven by an increase in finished goods Inventory Component ($ thousands) | Inventory Component ($ thousands) | May 3, 2025 | May 4, 2024 | Change ($ thousands) | Change (%) | | :-------------------------------- | :---------- | :---------- | :------------------- | :--------- | | Raw materials | 14,736 | 13,521 | 1,215 | 9.0% | | Work-in-process | 617 | 608 | 9 | 1.5% | | Finished goods | 558,262 | 516,441 | 41,821 | 8.1% | | Inventories, net | 573,615 | 530,570 | 43,045 | 8.1% | [Note 8 Goodwill and Intangible Assets](index=15&type=section&id=Note%208%20Goodwill%20and%20Intangible%20Assets) Net goodwill and intangible assets decreased to $189.5 million as of May 3, 2025, from $200.6 million a year prior, primarily due to accumulated amortization of intangible assets. No goodwill or indefinite-lived intangible asset impairment charges were recorded during the period Asset Category ($ thousands) | Asset Category ($ thousands) | May 3, 2025 | May 4, 2024 | Change ($ thousands) | Change (%) | | :--------------------------- | :---------- | :---------- | :------------------- | :--------- | | Total intangible assets, net | 184,559 | 195,595 | (11,036) | (5.6)% | | Total goodwill | 4,956 | 4,956 | 0 | 0.0% | | Goodwill and intangible assets, net | 189,515 | 200,551 | (11,036) | (5.5)% | | Accumulated amortization | (160,324) | (149,288) | (11,036) | 7.4% | - Amortization expense for intangible assets was **$2.8 million** for both the thirteen weeks ended May 3, 2025, and May 4, 2024. The company estimates future amortization expense to be approximately **$11.0 million** in 2025 and 2026[52](index=52&type=chunk) - No goodwill or indefinite-lived intangible asset impairment charges were recorded during the thirteen weeks ended May 3, 2025, or May 4, 2024[53](index=53&type=chunk)[54](index=54&type=chunk) [Note 9 Leases](index=16&type=section&id=Note%209%20Leases) Total lease expense increased to $52.5 million for the thirteen weeks ended May 3, 2025, from $51.1 million in the prior year, with cash paid for lease liabilities also increasing. The company recognized $30.3 million in new right-of-use assets and lease obligations from new or amended leases Lease Expense ($ thousands) | Lease Expense ($ thousands) | Thirteen Weeks Ended May 3, 2025 | Thirteen Weeks Ended May 4, 2024 | Change ($ thousands) | Change (%) | | :-------------------------- | :------------------------------- | :------------------------------- | :------------------- | :--------- | | Operating lease expense | 40,577 | 40,023 | 554 | 1.4% | | Variable lease expense | 11,731 | 10,735 | 996 | 9.3% | | Short-term lease expense | 144 | 307 | (163) | (53.1)% | | Total lease expense | 52,452 | 51,065 | 1,387 | 2.7% | - Cash paid for lease liabilities increased to **$51.2 million** for the thirteen weeks ended May 3, 2025, from **$42.2 million** in the prior year[61](index=61&type=chunk) - The company recognized **$30.3 million** in right-of-use assets and lease obligations from new or amended leases during the thirteen weeks ended May 3, 2025[60](index=60&type=chunk) [Note 10 Financing Arrangements](index=17&type=section&id=Note%2010%20Financing%20Arrangements) The company's borrowings under its revolving credit facility increased to $258.5 million as of May 3, 2025, from $191.0 million a year prior, with $233.4 million in additional borrowing availability. The company expects to refinance its revolving credit facility in 2025 ahead of its October 2026 maturity - Borrowings under the revolving credit agreement increased to **$258.5 million** as of May 3, 2025, from **$191.0 million** as of May 4, 2024, an increase of **$67.5 million**[6](index=6&type=chunk)[68](index=68&type=chunk) - Total additional borrowing availability was **$233.4 million** as of May 3, 2025[68](index=68&type=chunk) - The company expects to refinance its revolving credit facility in **2025**, prior to its **October 2026** maturity[106](index=106&type=chunk)[141](index=141&type=chunk) [Note 11 Shareholders' Equity](index=18&type=section&id=Note%2011%20Shareholders'%20Equity) The accumulated other comprehensive loss decreased to $(27.2) million as of May 3, 2025, from $(34.1) million a year prior, primarily due to a positive foreign currency translation adjustment Accumulated Other Comprehensive Loss ($ thousands) | Component ($ thousands) | May 3, 2025 | May 4, 2024 | Change ($ thousands) | Change (%) | | :---------------------- | :---------- | :---------- | :------------------- | :--------- | | Foreign Currency Translation | (28) | (1,855) | 1,827 | (98.5)% | | Pension and Other Postretirement Benefits | (27,145) | (32,266) | 5,121 | (15.9)% | | Accumulated Other Comprehensive Loss | (27,173) | (34,121) | 6,948 | (20.4)% | [Note 12 Share-Based Compensation](index=18&type=section&id=Note%2012%20Share-Based%20Compensation) Share-based compensation expense decreased to $2.8 million for the thirteen weeks ended May 3, 2025, from $3.7 million in the prior year. The company granted 748,063 restricted shares and long-term incentive awards payable in cash with a target value of $6.7 million during the current period Share-based Compensation Expense ($ thousands) | Metric ($ thousands) | Thirteen Weeks Ended May 3, 2025 | Thirteen Weeks Ended May 4, 2024 | Change ($ thousands) | Change (%) | | :------------------- | :------------------------------- | :------------------------------- | :------------------- | :--------- | | Share-based compensation expense | 2,843 | 3,710 | (867) | (23.4)% | - The company granted **748,063 restricted shares** with a graded vesting term of three years during the thirteen weeks ended May 3, 2025, compared to **303,285 shares** in the prior year[73](index=73&type=chunk) - Long-term incentive awards payable in cash for the 2025-2027 performance period were granted with a target value of **$6.7 million** and a maximum value of **$13.4 million**[75](index=75&type=chunk) [Note 13 Retirement and Other Benefit Plans](index=20&type=section&id=Note%2013%20Retirement%20and%20Other%20Benefit%20Plans) Total net periodic benefit expense for pension and other postretirement benefits increased to $773 thousand for the thirteen weeks ended May 3, 2025, from $411 thousand in the prior year, primarily due to higher service and interest costs, partially offset by expected return on assets Net Periodic Benefit Expense (Income) ($ thousands) | Component ($ thousands) | Thirteen Weeks Ended May 3, 2025 | Thirteen Weeks Ended May 4, 2024 | Change ($ thousands) | Change (%) | | :---------------------- | :------------------------------- | :------------------------------- | :------------------- | :--------- | | Service cost | 1,224 | 1,192 | 32 | 2.7% | | Interest cost | 3,621 | 3,732 | (111) | (3.0)% | | Expected return on assets | (5,556) | (6,076) | 520 | (8.6)% | | Amortization of actuarial loss (gain) | 1,477 | 1,539 | (62) | (4.0)% | | Total net periodic benefit expense (income) | 773 | 411 | 362 | 88.1% | [Note 14 Fair Value Measurements](index=20&type=section&id=Note%2014%20Fair%20Value%20Measurements) The company measures various assets and liabilities at fair value on a recurring basis, primarily using Level 1 inputs. Long-lived asset impairment charges totaled $277 thousand for the thirteen weeks ended May 3, 2025, mainly in the Famous Footwear segment - All recurring fair value measurements for non-qualified deferred compensation plan assets/liabilities, non-qualified restoration plan assets/liabilities, and non-employee director deferred compensation/RSUs are based on **Level 1 inputs** (quoted prices in active markets)[89](index=89&type=chunk) Impairment Charges ($ thousands) | Impairment Charges ($ thousands) | Thirteen Weeks Ended May 3, 2025 | Thirteen Weeks Ended May 4, 2024 | Change ($ thousands) | Change (%) | | :------------------------------- | :------------------------------- | :------------------------------- | :------------------- | :--------- | | Famous Footwear | 277 | 195 | 82 | 42.1% | | Brand Portfolio | — | 50 | (50) | (100.0)% | | Total long-lived asset impairment charges | 277 | 245 | 32 | 13.1% | - The fair values of cash and cash equivalents, receivables, trade accounts payable, and borrowings under the revolving credit agreement approximate their carrying values due to their short-term nature (Level 1)[91](index=91&type=chunk) [Note 15 Income Taxes](index=23&type=section&id=Note%2015%20Income%20Taxes) The consolidated effective tax rate increased to 29.8% for the thirteen weeks ended May 3, 2025, from 23.0% in the prior year, primarily due to a discrete tax provision related to share-based compensation. The company continues to evaluate the potential impact of Pillar Two rules but does not expect a material impact Effective Tax Rate | Metric | Thirteen Weeks Ended May 3, 2025 | Thirteen Weeks Ended May 4, 2024 | Change (ppt) | | :----- | :------------------------------- | :------------------------------- | :----------- | | Effective Tax Rate | 29.8% | 23.0% | 6.8 | - The higher effective tax rate in Q1 2025 was driven by a discrete tax provision of approximately **$0.3 million** related to share-based compensation, compared to a discrete tax benefit of **$0.8 million** in Q1 2024[93](index=93&type=chunk) - The company does not expect the OECD's Pillar Two Global Anti-Base Erosion model rules, effective January 1, 2024, to have a material impact on its tax provision or effective tax rate[124](index=124&type=chunk) [Note 16 Commitments and Contingencies](index=23&type=section&id=Note%2016%20Commitments%20and%20Contingencies) The company is involved in environmental remediation activities at its Redfield site, with cumulative expenditures of $34.9 million through May 3, 2025, and a reserve of $9.1 million for anticipated future activities. The company also faces ordinary course litigation, not expected to have a material adverse effect - Cumulative expenditures for environmental remediation at the Redfield site reached **$34.9 million** through May 3, 2025[98](index=98&type=chunk) Environmental Remediation Reserve ($ thousands) | Environmental Remediation Reserve ($ thousands) | May 3, 2025 | | :---------------------------------------------- | :---------- | | Total reserve for anticipated future remediation | 9,100 | | - Off-site remediation | 4,700 | | - On-site remediation | 4,400 | - The company expects to spend approximately **$0.1 million** in 2025 and each of the following four years, and **$11.7 million** thereafter, for on-site remediation[98](index=98&type=chunk) - Management believes the outcome of current legal proceedings and litigation will not have a material adverse effect on the company's results of operations or financial position[102](index=102&type=chunk) [ITEM 2 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=25&type=section&id=ITEM%202%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) This section provides management's perspective on the company's financial condition and results of operations for the first quarter of 2025, highlighting key trends, segment performance, liquidity, and capital resources. It discusses the impact of macroeconomic factors, the Stuart Weitzman acquisition, and strategic initiatives [OVERVIEW](index=25&type=section&id=OVERVIEW) This overview summarizes Caleres, Inc.'s business, the Stuart Weitzman acquisition, macroeconomic impacts, and liquidity position - Caleres, Inc. is a global footwear company operating retail stores, e-commerce websites, and designing, developing, sourcing, manufacturing, and distributing footwear[103](index=103&type=chunk) - The company signed an agreement to acquire Stuart Weitzman for **$105 million**, expected to close in summer 2025, aiming to grow its Brand Portfolio segment with more global and direct-to-consumer reach[104](index=104&type=chunk) - Macroeconomic factors, including recent tariff announcements and lighter consumer traffic, negatively impacted Q1 2025 financial results, leading to lower net sales[105](index=105&type=chunk) - The company's liquidity position remains strong with **$33.1 million in cash and cash equivalents** and **$233.4 million in excess borrowing availability** as of May 3, 2025[106](index=106&type=chunk) Financial Highlight ($ millions, except per share) | Financial Highlight ($ millions, except per share) | Thirteen Weeks Ended May 3, 2025 | Thirteen Weeks Ended May 4, 2024 | Change ($ millions) | Change (%) | | :----------------------------------------------- | :------------------------------- | :------------------------------- | :------------------ | :--------- | | Consolidated net sales | $614.2 | $659.2 | ($45.0) | (6.8)% | | Famous Footwear segment net sales | $327.7 | $349.6 | ($21.9) | (6.3)% | | Brand Portfolio segment net sales | $295.4 | $317.2 | ($21.8) | (6.9)% | | Gross profit | $278.7 | $309.1 | ($30.4) | (9.8)% | | Gross margin | 45.4% | 46.9% | (152 bps) | | | Operating earnings | $11.6 | $42.8 | ($31.2) | (72.9)% | | Diluted earnings per share | $0.21 | $0.88 | ($0.67) | (76.1)% | - Direct-to-consumer sales represented approximately **70% of consolidated net sales** in Q1 2025, up from **69% in Q1 2024**, and generally result in higher gross margins[111](index=111&type=chunk)[114](index=114&type=chunk) [CONSOLIDATED RESULTS](index=27&type=section&id=CONSOLIDATED%20RESULTS) This section details consolidated financial performance, including net sales, gross profit, operating earnings, and effective tax rate Consolidated Results ($ millions) | Metric ($ millions) | Thirteen Weeks Ended May 3, 2025 | Thirteen Weeks Ended May 4, 2024 | Change ($ millions) | Change (%) | | :------------------ | :------------------------------- | :------------------------------- | :------------------ | :--------- | | Net sales | $614.2 | $659.2 | ($45.0) | (6.8)% | | Cost of goods sold | $335.5 | $350.1 | ($14.6) | (4.2)% | | Gross profit | $278.7 | $309.1 | ($30.4) | (9.8)% | | Gross margin | 45.4% | 46.9% | (1.5 ppt) | | | Selling and administrative expenses | $266.5 | $266.3 | $0.2 | 0.1% | | Operating earnings | $11.6 | $42.8 | ($31.2) | (72.9)% | | Net earnings attributable to Caleres, Inc. | $6.9 | $30.9 | ($24.0) | (77.6)% | - Gross margin decreased due to lower merchandise margins, incremental costs from canceling and moving inventory out of China after tariff escalation, higher inventory markdowns, and increased freight costs from a higher mix of e-commerce sales[115](index=115&type=chunk) - Selling and administrative expenses increased slightly due to growth in international business, higher facilities costs (including depreciation from Famous Footwear store renovations to FLAIR concept), and increased IT expenses, partially offset by lower advertising and marketing[117](index=117&type=chunk) - The effective tax rate increased to **29.8% in Q1 2025** from **23.0% in Q1 2024**, driven by a discrete tax provision related to share-based compensation[123](index=123&type=chunk) [FAMOUS FOOTWEAR](index=29&type=section&id=FAMOUS%20FOOTWEAR) This segment experienced declines in net sales and operating earnings, despite increased e-commerce penetration and FLAIR store outperformance Famous Footwear Segment Performance ($ millions, except %) | Metric ($ millions, except %) | Thirteen Weeks Ended May 3, 2025 | Thirteen Weeks Ended May 4, 2024 | Change ($ millions) | Change (%) | | :---------------------------- | :------------------------------- | :------------------------------- | :------------------ | :--------- | | Net sales | $327.7 | $349.6 | ($21.9) | (6.3)% | | Comparable sales % change | (4.6)% | (2.3)% | (2.3 ppt) | | | Gross profit | $148.4 | $161.0 | ($12.6) | (7.8)% | | Gross margin | 45.3% | 46.1% | (0.8 ppt) | | | Selling and administrative expenses | $143.4 | $144.1 | ($0.7) | (0.5)% | | Operating earnings | $5.0 | $16.9 | ($11.9) | (70.5)% | - E-commerce sales penetration increased to **14% of net sales** in Q1 2025, up from **13% in Q1 2024**, despite an overall decline in traffic. The kids category continued to outperform[127](index=127&type=chunk) - The segment closed **11 stores** in Q1 2025, ending with **835 stores**. Sales to Famously You Rewards members accounted for **79% of net sales**, up from **78% in Q1 2024**[128](index=128&type=chunk) - **10 stores** were converted to the new FLAIR concept in Q1 2025, bringing the total to **44 FLAIR stores**, which continue to outperform traditional stores[130](index=130&type=chunk) [BRAND PORTFOLIO](index=30&type=section&id=BRAND%20PORTFOLIO) This segment saw decreased net sales and operating earnings, with increased direct-to-consumer sales and expanded international presence Brand Portfolio Segment Performance ($ millions, except %) | Metric ($ millions, except %) | Thirteen Weeks Ended May 3, 2025 | Thirteen Weeks Ended May 4, 2024 | Change ($ millions) | Change (%) | | :---------------------------- | :------------------------------- | :------------------------------- | :------------------ | :--------- | | Net sales | $295.4 | $317.2 | ($21.8) | (6.9)% | | Gross profit | $129.3 | $147.8 | ($18.5) | (12.5)% | | Gross margin | 43.8% | 46.6% | (2.8 ppt) | | | Selling and administrative expenses | $111.9 | $106.4 | $5.5 | 5.2% | | Operating earnings | $17.4 | $41.4 | ($24.0) | (57.9)% | - Direct-to-consumer sales represented **35% of net sales** in Q1 2025, up from **33% in Q1 2024**[133](index=133&type=chunk) - The segment expanded its international presence, with **54 stores in East Asia** (up from 38) and **116 international franchise locations** (up from 103) as of May 3, 2025[133](index=133&type=chunk) - Unfilled wholesale order position increased by **2.6% to $263.6 million** as of May 3, 2025[134](index=134&type=chunk) - Selling and administrative expenses increased due to international business growth, higher provision for expected credit losses, and increased salary and benefits, partially offset by lower marketing[136](index=136&type=chunk) [ELIMINATIONS AND OTHER](index=31&type=section&id=ELIMINATIONS%20AND%20OTHER) This section details intersegment eliminations and other charges, including restructuring costs for the Stuart Weitzman acquisition Eliminations and Other ($ millions) | Metric ($ millions) | Thirteen Weeks Ended May 3, 2025 | Thirteen Weeks Ended May 4, 2024 | Change ($ millions) | Change (%) | | :------------------ | :------------------------------- | :------------------------------- | :------------------ | :--------- | | Net sales | ($8.9) | ($7.6) | ($1.3) | 17.1% | | Gross profit | $1.0 | $0.3 | $0.7 | 233.3% | | Selling and administrative expenses | $11.1 | $15.8 | ($4.7) | (29.7)% | | Restructuring and other special charges, net | $0.6 | — | $0.6 | N/A | | Operating loss | ($10.7) | ($15.5) | $4.8 | (31.0)% | - The net sales elimination increased by **$1.3 million**, or **17.0%**, reflecting higher intersegment product sales from Brand Portfolio to Famous Footwear[139](index=139&type=chunk) - Selling and administrative expenses decreased by **$4.7 million**, primarily due to lower expenses for cash and share-based incentive compensation[139](index=139&type=chunk) - Restructuring and other special charges of **$0.6 million** were incurred for legal and related costs of the Stuart Weitzman acquisition[140](index=140&type=chunk) [LIQUIDITY AND CAPITAL RESOURCES](index=31&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) This section analyzes the company's cash flows, debt obligations, working capital, and ability to meet future financial requirements - Total debt obligations increased by **$67.5 million to $258.5 million** as of May 3, 2025, from **$191.0 million** a year prior[142](index=142&type=chunk) - The company used **$5.0 million** from its revolving credit facility for share repurchases in Q1 2025, compared to **$15.1 million** in Q1 2024[142](index=142&type=chunk)[146](index=146&type=chunk) - Net cash used for operating activities was **$5.7 million** in Q1 2025, a **$41.8 million decrease** from cash provided in Q1 2024, primarily due to lower net earnings, increased inventory, and decreased trade accounts payable[145](index=145&type=chunk)[148](index=148&type=chunk) - Net cash provided by financing activities was **$30.3 million** in Q1 2025, a **$46.7 million increase** from cash used in Q1 2024, mainly due to higher net borrowings under the revolving credit agreement[146](index=146&type=chunk) Financial Ratios ($ millions) | Metric ($ millions) | May 3, 2025 | May 4, 2024 | February 1, 2025 | | :------------------ | :---------- | :---------- | :--------------- | | Working capital | $76.1 | $41.0 | $78.6 | | Current ratio | 1.10:1 | 1.05:1 | 1.10:1 | | Debt-to-capital ratio | 29.7% | 24.9% | 26.6% | - The company declared and paid dividends of **$0.07 per share** in Q1 2025 and Q1 2024 and expects to continue paying dividends[150](index=150&type=chunk) - The company believes its operating cash flows are sufficient to meet material cash requirements for at least the next 12 months[151](index=151&type=chunk) [CRITICAL ACCOUNTING POLICIES AND ESTIMATES](index=33&type=section&id=CRITICAL%20ACCOUNTING%20POLICIES%20AND%20ESTIMATES) This section confirms no material changes to critical accounting policies and estimates since the last fiscal year - No material changes to critical accounting policies and estimates since the last fiscal year[152](index=152&type=chunk) [RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS](index=33&type=section&id=RECENTLY%20ISSUED%20ACCOUNTING%20PRONOUNCEMENTS) This section refers to Note 2 for detailed information regarding recently issued accounting pronouncements - Refer to Note 2 for details on recently issued accounting pronouncements[153](index=153&type=chunk) [FORWARD-LOOKING STATEMENTS](index=33&type=section&id=FORWARD-LOOKING%20STATEMENTS) This section highlights risks including trade policies, consumer demand shifts, inflation, and supply chain disruptions affecting future performance - Forward-looking statements are subject to risks such as changes in trade policies (tariffs), changing consumer demands, inflationary pressures, supply chain disruptions, and intense competition[154](index=154&type=chunk) - The company relies heavily on third-party manufacturing in China and other countries, making it vulnerable to political and economic conditions or disruptions in inventory flow[154](index=154&type=chunk) [ITEM 3 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=33&type=section&id=ITEM%203%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) No material changes have occurred in the quantitative and qualitative information about market risk since the end of the most recent fiscal year - No material changes in quantitative and qualitative information about market risk since the end of the most recent fiscal year[155](index=155&type=chunk) [ITEM 4 CONTROLS AND PROCEDURES](index=33&type=section&id=ITEM%204%20CONTROLS%20AND%20PROCEDURES) The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level as of May 3, 2025. There have been no material changes to internal controls over financial reporting during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that disclosure controls and procedures were effective at the reasonable assurance level as of May 3, 2025[158](index=158&type=chunk) - No material changes in internal controls over financial reporting occurred during the quarter ended May 3, 2025[159](index=159&type=chunk) [PART II OTHER INFORMATION](index=34&type=section&id=PART%20II%20OTHER%20INFORMATION) This section covers other important information, including legal proceedings, risk factors, equity security sales, and disclosures [ITEM 1 LEGAL PROCEEDINGS](index=34&type=section&id=ITEM%201%20LEGAL%20PROCEEDINGS) The company is involved in ordinary course legal proceedings and litigation, which management believes will not have a material adverse effect on its financial position or results of operations. Legal costs are expensed as incurred - Management believes current legal proceedings and litigation will not materially adversely affect the company's financial position or results of operations[160](index=160&type=chunk) - Legal costs associated with litigation are expensed as incurred[160](index=160&type=chunk) [ITEM 1A RISK FACTORS](index=34&type=section&id=ITEM%201A%20RISK%20FACTORS) No material changes to risk factors have occurred since the last fiscal year, except for an update on the adverse impact of changes in U.S. and international trade policies, including tariffs. The uncertainty surrounding tariffs poses significant risks to costs, margins, and supply chain management - No material changes to risk factors since the last fiscal year, except for the impact of changes in U.S. and international trade policies, including tariffs[162](index=162&type=chunk) - Recent U.S. tariffs on imported products and potential retaliatory tariffs pose significant risks, potentially increasing costs, reducing margins, and creating supply chain challenges[163](index=163&type=chunk) - Tariffs may lead to higher product pricing, potentially shifting customers to private-label or lower-cost alternatives[163](index=163&type=chunk) [ITEM 2 UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=35&type=section&id=ITEM%202%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) The company repurchased 300,000 shares of common stock under its 2022 stock repurchase program during the first quarter of 2025 at an average price of $16.41 per share, with 3,366,055 shares remaining authorized for repurchase Stock Repurchase Program (Q1 2025) | Fiscal Period (Q1 2025) | Total Number of Shares Purchased | Average Price Paid per Share | Purchased as Part of Publicly Announced Program | Maximum Number of Shares Yet to be Purchased | | :---------------------- | :------------------------------- | :--------------------------- | :---------------------------------------------- | :------------------------------------------- | | Total | 494,535 | $16.41 | 300,000 | 3,366,055 | - The 2022 stock repurchase program authorized the repurchase of **7,000,000 shares**, with **3,366,055 shares** remaining authorized as of May 3, 2025[167](index=167&type=chunk) [ITEM 3 DEFAULTS UPON SENIOR SECURITIES](index=35&type=section&id=ITEM%203%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) There were no defaults upon senior securities - No defaults upon senior securities[168](index=168&type=chunk) [ITEM 4 MINE SAFETY DISCLOSURES](index=35&type=section&id=ITEM%204%20MINE%20SAFETY%20DISCLOSURES) Not applicable - Not applicable[169](index=169&type=chunk) [ITEM 5 OTHER INFORMATION](index=35&type=section&id=ITEM%205%20OTHER%20INFORMATION) No director or Section 16 officer adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the thirteen weeks ended May 3, 2025 - No director or Section 16 officer adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangement in Q1 2025[170](index=170&type=chunk) [ITEM 6 EXHIBITS](index=36&type=section&id=ITEM%206%20EXHIBITS) This section lists the exhibits filed with the Form 10-Q, including the Sale and Purchase Agreement for Stuart Weitzman, corporate governance documents, and certifications - Key exhibits include the Sale and Purchase Agreement for Stuart Weitzman, Restated Certificate of Incorporation, Bylaws, and various certifications (CEO, CFO)[172](index=172&type=chunk) [SIGNATURE](index=37&type=section&id=SIGNATURE) The report was signed on June 10, 2025, by Jack P. Calandra, Senior Vice President and Chief Financial Officer of Caleres, Inc - The report was signed by Jack P. Calandra, Senior Vice President and Chief Financial Officer, on June 10, 2025[177](index=177&type=chunk)

Core Viewpoint - Pomerantz LLP is investigating potential securities fraud or unlawful business practices involving Caleres, Inc. and its officers or directors, following disappointing financial results and a significant stock price drop [1][2]. Financial Performance - Caleres reported first-quarter 2025 sales of $614.2 million, which is a 6.8% decline year-over-year, and acknowledged that this result was below expectations [2]. - The company suspended its guidance for 2025 due to uncertainty in the market environment [2]. - Following the announcement, Caleres's stock price fell by $3.00 per share, or 18.32%, closing at $13.38 per share on May 29, 2025 [2]. Legal Investigation - Pomerantz LLP is representing investors in investigating claims against Caleres for possible securities fraud [1]. - The firm has a long history in corporate and securities class litigation, having recovered significant damages for victims of securities fraud and corporate misconduct [3].

Core Viewpoint - Pomerantz LLP is investigating potential securities fraud and unlawful business practices involving Caleres, Inc. and its officers or directors, following disappointing financial results and a significant stock price drop [1][3]. Financial Performance - Caleres reported first-quarter 2025 sales of $614.2 million, marking a 6.8% decline year-over-year, which was acknowledged by the CFO as below expectations [3]. - The company suspended its guidance for 2025 due to uncertainty in the market environment [3]. - Following the financial report, Caleres's stock price decreased by $3.00 per share, or 18.32%, closing at $13.38 per share on May 29, 2025 [3]. Legal Investigation - Pomerantz LLP is actively investigating claims on behalf of investors regarding potential securities fraud by Caleres [1]. - The firm has a long history in corporate and securities class litigation, having recovered significant damages for victims of securities fraud and corporate misconduct [4].

Group 1 - Sales declined across both Brand Portfolio and Famous Footwear, indicating a potential downturn in consumer demand [1] - Inventories increased significantly, particularly within the brand segment, which may suggest overstocking or reduced sales velocity [1] - Bad debt expenses and customer-related issues were highlighted, indicating potential challenges in credit management and customer payment behaviors [1]

Group 1 - Caleres, Inc. announced its intention to acquire Stuart Weitzman in February, which generated surprise and interest in the deal [1] - The investing group "Value In Corporate Events" focuses on providing members with opportunities related to IPOs, mergers & acquisitions, earnings reports, and corporate capital allocation changes [2] - The group covers approximately 10 major events each month, aiming to identify the best investment opportunities [2]

FIRST QUARTER 2025 MAY 29, 2025 SAFE HARBOR UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 This presentation contains certain forward-looking statements and expectations regarding the company's future performance and the performance of its brands. Such statements are subject to various risks and uncertainties that could cause actual results to differ materially. These risks include (i) changes in United States and international trade policies, including tariffs and trade restrictions; (ii) chang ...

Financial Data and Key Metrics Changes - Adjusted earnings per share for Q1 2025 were $0.22, down from $0.88 in the previous year [29] - Total sales for Q1 2025 were $614.2 million, a decline of 6.8% year over year, which was below expectations of a 5% to 6% decline [26][27] - Consolidated gross margin decreased to 45.4%, down 150 basis points compared to last year [27] - Operating earnings were $12.2 million, resulting in an operating margin of 2% [28] Business Segment Data and Key Metrics Changes - Brand Portfolio sales declined by 6.9%, with gross margin at 43.8%, down 280 basis points due to lower initial margins and higher markdown reserves [27][28] - Famous Footwear sales decreased by 6.3%, with comparable sales down 4.6%, but e-commerce sales increased by 2.5% [20][21] - The Brand Portfolio's lead brands, including Sam Edelman and Allen Edmonds, represented about 60% of sales and 80% of operating earnings [12] Market Data and Key Metrics Changes - The Brand Portfolio gained market share in women's fashion footwear despite overall sales declines [11] - Famous Footwear gained 0.5 points of market share in shoe chains within the kids category [21] Company Strategy and Development Direction - The company plans to reduce SG&A expenses by $15 million annually through structural cuts [7][34] - An acquisition of Stuart Weitzman is expected to enhance the company's premium positioning and direct-to-consumer presence [19] - The company is focusing on optimizing sourcing strategies and managing inventory levels in response to tariff impacts [9][32] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging operating environment and emphasized the need to drive growth and profitability [6][7] - There is cautious optimism regarding back-to-school preparations, with no major cancellations reported [40] - The company is suspending guidance due to the volatile environment but is seeing improving retail trends [33][34] Other Important Information - Inventory levels increased by 8.1% year over year, with a significant portion attributed to the upcoming launch of the Jordan brand [30] - Cash flow from operations was negative $5.7 million due to lower net income and higher inventory levels [30] Q&A Session Summary Question: How are you thinking about the prices of your portfolio brands moving into the summer and fall? - The company is making selective price increases, starting with fall receipts, and is managing this in real-time with key partners [38][39] Question: What adjustments are being made for the $15 million in strategic expense cutting? - The reductions are permanent and structural, expected to begin in the third quarter, with $7.5 million in savings for the back half of the year [43][44] Question: How is the Jordan launch performing? - Early trends for the Jordan launch are encouraging, with strong sell-throughs in men's and boys' categories [56][57] Question: What is the impact of tariffs on the business? - The company is managing tariff-related challenges through factory concessions and selective price increases, but the situation remains fluid [32][60] Question: How should we think about inventory reserves and customer credit issues moving forward? - The company believes it has adequately reserved for spring product markdowns and is closely monitoring customer credit ratings [62][63]

Financial Data and Key Metrics Changes - The company reported adjusted earnings per share of $0.22, with first quarter sales declining 6.8% year over year [8][26] - Consolidated gross margin was 45.4%, down 150 basis points compared to last year, driven by lower margins in both segments [26] - Operating earnings were $12.2 million, with an operating margin of 2% [28] Business Segment Data and Key Metrics Changes - Brand Portfolio sales declined 6.9%, while Famous Footwear sales were down 6.3% with comparable sales down 4.6% [20][26] - The Brand Portfolio gross margin was 43.8%, down 280 basis points due to lower initial margins and higher markdown reserves [26] - Famous gross margin was 45.3%, down 80 basis points due to increased promotional days and higher freight costs [26] Market Data and Key Metrics Changes - The company gained market share in women's fashion footwear despite overall sales declines [11] - Famous Footwear saw a 0.5 point market share gain in the kids category, with kids penetration at 21% [21] Company Strategy and Development Direction - The company is focused on controlling costs, optimizing sourcing strategies, and reducing SG&A expenses by $15 million annually [7][34] - The planned acquisition of Stuart Weitzman is seen as a strategic fit, enhancing the company's premium positioning and direct-to-consumer presence [18][19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging operating environment and emphasized the need to drive growth and profitability [6][7] - The company is cautiously optimistic about back-to-school sales and believes it is well-positioned to gain market share [24][40] Other Important Information - Inventory levels increased by 8.1% year over year, with a significant build for the Jordan brand launch [30] - Cash flow from operations was negative $5.7 million due to lower net income and higher inventory levels [30] Q&A Session Summary Question: How are you thinking about the prices of your portfolio brands moving into the summer and fall? - The company is making selective price increases and managing them in real-time with key partners [38][39] Question: Do you see the weaker brand portfolio brands being restructured or exited? - The company is reviewing its brand portfolio but has no immediate plans for restructuring [40] Question: Is Famous Footwear prepared for back-to-school? - The company is in a good position for back-to-school with no major cancellations reported [41] Question: What adjustments are being made for the $15 million in strategic expense cuts? - The reductions are permanent and structural, expected to begin in the third quarter [43][44] Question: Can you provide more context on the Jordan launch? - The Jordan launch is new, and while initial trends are encouraging, significant marketing will ramp up closer to back-to-school [46][57] Question: How are tariffs impacting your plans? - The company is currently maintaining its sourcing strategy and will adjust as necessary based on tariff developments [48][49] Question: How should we think about inventory reserves and customer credit issues moving forward? - The company believes it has adequately reserved for inventory markdowns and is closely monitoring customer credit ratings [62]

Caleres Inc. (CAL) came out with quarterly earnings of $0.22 per share, missing the Zacks Consensus Estimate of $0.37 per share. This compares to earnings of $0.88 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -40.54%. A quarter ago, it was expected that this footwear wholesaler and retailer would post earnings of $0.27 per share when it actually produced earnings of $0.33, delivering a surprise of 22.22%.Over the last four ...